Century Aluminum (CENX) 8-K Century Reports 2011 Financial Results

Exhibit 99.1

Century Reports 2011 Financial Results

MONTEREY, CA. February 23, 2012 -- Century Aluminum Company

(NASDAQ:CENX) reported a net loss of $31.1 million ($0.35 per basic and diluted common share) for the fourth quarter of 2011.  Financial results were positively impacted by an unrealized gain on forward contracts of $2.4 million primarily related to the mark to market of aluminum price protection options. Cost of sales for the quarter included a $6.3 million charge for lower of cost or market inventory adjustments.

For the fourth quarter of 2010, the company reported net income of $65.3 million ($0.65 per basic and $0.64 per diluted common share).  Financial results were negatively impacted by an unrealized loss on forward contracts of $5.6 million primarily related to the mark to market of aluminum price protection options and by a contractual termination pension benefit charge of $4.6 million due to the continued curtailment of the Ravenswood facility.  Changes to the Century of West Virginia retiree medical benefits program increased quarterly results by $56.7 million with an associated discrete tax benefit of $2.0 million.  Cost of sales for the quarter included a $15.9 million net after-tax charge for the portion of power costs at Hawesville paid by the previous power supplier per the terms of the power agreements.

For 2011, the company reported net income of $11.3 million ($0.11 per basic and diluted common share).  Financial results were negatively impacted by a $7.7 million charge in the second quarter related to the contractual impact of changes in the company's Board of Directors and the executive management team, a charge of $2.9 million related to an insurance receivable, and a charge of $0.8 million related to the early retirement of debt. Changes to the Century of West Virginia retiree medical benefits program increased results by $18.3 million with an associated discrete tax benefit of $4.2 million.  An unrealized gain on forward contracts, primarily related to the mark to market of aluminum price protection options, positively impacted results by $0.8 million.  Cost of sales included an $8.6 million charge related to the restart of a curtailed potline at the Hawesville, KY smelter, and a $19.8 million charge for lower of cost or market inventory adjustments.

For 2010, the company reported net income of $60.0 million ($0.59 per basic and diluted common share).  Financial results were negatively impacted by an unrealized loss on forward contracts of $10.0 million primarily related to the mark to market of aluminum price protection options and by a contractual termination pension benefit charge of $4.6 million due to the continued curtailment of the Ravenswood facility.  Changes to the Century of West Virginia retiree medical benefits program increased results by $56.7 million with an associated discrete tax benefit of $2.0 million.  Tax benefits related to the release of tax reserves no longer required positively impacted results by $2.1 million.  Cost of sales included a $63.2 million net after-tax charge for the portion of power costs at Hawesville paid by the previous power supplier per the terms of the power agreements.

Sales for the fourth quarter of 2011 were $318.2 million compared with $316.9 million for the fourth quarter of 2010.  Shipments of primary aluminum for the 2011 fourth quarter were 155,649 tonnes compared with 148,923 tonnes shipped in the year-ago quarter.  Sales for 2011 were $1,356 million compared with $1,169 million for 2010, and total 2011 primary aluminum shipments of 602,142 tonnes compared with 585,395 tonnes shipped in 2010.

“We continue to see generally favorable conditions in our markets,” commented Michael Bless, President and Chief Executive Officer.  “Trends in end customer demand remain good across a range of key segments.  In the U.S., physical premiums remain supportive and interest in higher margin specialty products continues to be strong.  The increase in large-user power costs, pervasive across developed economies, is a serious ongoing challenge which is threatening the long-term competitiveness of what would otherwise be very good businesses.  We are spending considerable effort to address this challenge to our U.S. smelters. Broader market conditions remain volatile, and will continue to be sensitive to, amongst other developments, the environment in the Eurozone and in the Chinese economy.  With this background, we plan to invest in 2012 in growing and improving our businesses, while continuing to prepare for reasonable contingencies.

“We are pleased with the Company’s recent performance,” continued Bless.  “Though we always expect continuing improvement, safety trends have been gratifying these last few months; the Board and I would like to acknowledge the efforts of all employees toward this, our first priority.  As forecast, Hawesville returned to near full production by year-end.  Key performance indicators have continued to improve, conversion costs have fallen, metal quality has improved and fourth quarter production was up 12 percent versus the third quarter.  Across our businesses, we have begun to see some abatement in the recent significant increases in raw material costs.  In Iceland, Grundartangi had an excellent quarter, and has fully recovered from the temporary instability caused by the power interruption in early January.  In late December, we received the ruling related to the arbitration with one of the power suppliers for the new plant at Helguvik.  The ruling was generally favorable to Nordural and we are now in discussions with both power suppliers aimed at reaching, over the next several months, final agreements which will allow us to recommence major project activity.”

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Monterey, Calif.  More information can be found at www.centuryaluminum.com.

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Century Aluminum’s quarterly conference call is scheduled for 5:00 p.m. Eastern time today.  To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.

Contacts:

Lindsey Berryhill (media)	831-642-9364
Shelly Harrison (investors)	831-642-9357

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:

Atli B. Gudmundsson, Senior Manager -- Corporate Finance, NBI hf.

Steingrimur Helgason, Director -- Corporate Finance, NBI hf.

Cautionary Statement

This press release and comments made by Century management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements, including, without limitation, declines in aluminum prices or increases in our operating costs; deterioration of global or local financial and economic conditions; additional delays in the completion of our Helguvik, Iceland smelter, including our ability to secure a reliable power supply and our ability to successfully manage and/or improve performance at each of our operating smelters.  Forward-looking statements in this press release include, without limitation, statements regarding future market and economic conditions, including the continuance of demand, pricing and cost trends in the aluminum market; our plans to invest in and grow our business in 2012; and our ability reach final agreements with the power suppliers to our Helguvik, Iceland smelter and recommence major project activity. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.

Century Aluminum Company

Consolidated Statements of Operations

(in Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended December 31,						Year ended December 31,
	2011			2010			2011			2010
NET SALES
Third-party customers	$	193,992		$	205,547		$	791,993		$	755,863
Related parties		124,172			111,304			564,431			413,408
		318,164			316,851			1,356,424			1,169,271
COST OF GOODS SOLD		331,796			275,716			1,266,902			1,056,875
GROSS PROFIT (LOSS)		(13,632	)		41,135			89,522			112,396
OTHER OPERATING EXPENSES (INCOME) – NET		4,624			(49,591	)		(3,806	)		(37,386	)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		8,916			11,101			46,032			46,802
OPERATING INCOME (LOSS)		(27,172	)		79,625			47,296			102,980
INTEREST EXPENSE – THIRD PARTY – NET		(5,934	)		(6,171	)		(24,791	)		(25,010	)
INTEREST INCOME – RELATED PARTY		61			115			303			448
NET GAIN (LOSS) ON FORWARD CONTRACTS		3,067			(5,681	)		804			(10,495	)
OTHER INCOME (EXPENSE) - NET		225			(598	)		(1,373	)		(377	)
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		(29,753	)		67,290			22,239			67,546
INCOME TAX EXPENSE		(2,213	)		(2,803	)		(14,359	)		(11,133	)
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		(31,966	)		64,487			7,880			56,413
EQUITY IN EARNINGS OF JOINT VENTURES		859			793			3,445			3,558
NET INCOME (LOSS)	$	(31,107	)	$	65,280		$	11,325		$	59,971
Net Income (Loss) Allocated to Common Shareholders	$	(31,107	)	$	59,939		$	10,404		$	55,046
EARNINGS (LOSS) PER COMMON SHARE
Basic	$	(0.35	)	$	0.65		$	0.11		$	0.59
Diluted	$	(0.35	)	$	0.64		$	0.11		$	0.59
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		89,352			92,742			91,854			92,676
Diluted		89,352			93,414			92,257			92,302

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	December 31, 2011			December 31, 2010
ASSETS
Current Assets:
Cash and cash equivalents	$	183,401		$	304,296
Restricted cash		-			3,673
Accounts receivable - net		47,647			43,903
Due from affiliates		44,665			51,006
Inventories		171,961			155,908
Prepaid and other current assets		40,646			18,292
Total current assets		488,320			577,078
Property, plant and equipment – net		1,218,225			1,256,970
Due from affiliates – less current portion		-			6,054
Other assets		104,549			82,954
Total	$	1,811,094		$	1,923,056
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	86,172		$	88,004
Due to affiliates		41,904			45,381
Accrued and other current liabilities		40,776			41,495
Accrued employee benefits costs – current portion		16,698			26,682
Convertible senior notes		-			45,483
Industrial revenue bonds		7,815			7,815
Total current liabilities		193,365			254,860
Senior notes payable		249,512			248,530
Accrued pension benefits costs – less current portion		70,899			37,795
Accrued postretirement benefits costs – less current portion		128,078			103,744
Other liabilities		40,005			37,612
Deferred taxes		90,958			85,999
Total noncurrent liabilities		579,452			513,680
Shareholders’ Equity:
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 80,718 and 82,515 shares issued and outstanding at December 31, 2011 and December 31, 2010, respectively)		1			1
Common stock (one cent par value, 195,000,000 shares authorized; 93,230,848 issued and 88,844,327 outstanding as of December 31, 2011; 92,771,864 shares issued and outstanding as of December 31, 2010)		932			928
Additional paid-in capital		2,506,842			2,503,907
Treasury stock, at cost		(45,891	)		-
Accumulated other comprehensive loss		(134,588	)		(49,976	)
Accumulated deficit		(1,289,019	)		(1,300,344	)
Total shareholders’ equity		1,038,277			1,154,516
Total	$	1,811,094		$	1,923,056

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Year ended December 31,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	11,325		$	59,971
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Unrealized net (gain) loss on forward contracts		(750	)		10,030
Realized benefit of contractual receivable		-			55,703
Accrued and other plant curtailment costs – net		(13,928	)		(56,010	)
Lower of cost or market inventory adjustment		19,766			(426	)
Depreciation and amortization		62,194			63,550
Debt discount amortization		1,857			3,150
Deferred income taxes		2,494			15,552
Pension and other postretirement benefits		(28,757	)		14,578
Stock-based compensation		2,856			1,905
Non-cash loss on early extinguishment of debt		763			-
Non-cash contingent obligation		-			13,091
Undistributed earnings of joint ventures		(3,445	)		(3,558	)
Change in operating assets and liabilities:
Accounts receivable – net		(3,744	)		(6,197	)
Due from affiliates		10,694			(38,191	)
Inventories		(35,819	)		(24,009	)
Prepaid and other current assets		(20,791	)		13,412
Accounts payable, trade		(904	)		11,674
Due to affiliates		(3,477	)		12,685
Accrued and other current liabilities		425			(1,758	)
Other – net		(3,695	)		(13,642	)
Net cash provided by (used in) operating activities		(2,936	)		131,510
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(20,100	)		(12,241	)
Nordural expansion		(12,882	)		(19,227	)
Investments in and advances to joint ventures		(113	)		(32	)
Payment received on advances from joint ventures		3,056			-
Proceeds from sale of property, plant and equipment		1,471			823
Restricted and other cash deposits		3,673			5,206
Net cash used in investing activities		(24,895	)		(25,471	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt		(47,067	)		-
Repayment of contingent obligation		(189	)		-
Borrowing under revolving credit facility		15,900			-
Repayment under revolving credit facility		(15,900	)		-
Repurchase of common stock		(45,891	)		-
Issuance of common stock – net		83			23
Net cash provided by (used in) financing activities		(93,064	)		23
CHANGE IN CASH AND CASH EQUIVALENTS		(120,895	)		106,062
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		304,296			198,234
CASH AND CASH EQUIVALENTS, END OF YEAR	$	183,401		$	304,296

Century Aluminum Company

Selected Operating Data

 (Unaudited)

SHIPMENTS – PRIMARY ALUMINUM

	Direct (1)						Toll
	Metric Tons		(000) Pounds		$/Pound		Metric Tons		(000) Pounds		(000) Revenue
2011
4th Quarter		87,665		193,269	$	1.06		67,984		149,877	$	112,411
3rd Quarter		82,236		181,299		1.19		68,596		151,229		129,369
2nd Quarter		84,509		186,310		1.26		66,974		147,652		132,113
1st Quarter		80,479		177,426		1.17		63,699		140,432		117,658
Total		334,889		738,304	$	1.17		267,253		589,190	$	491,551
2010
4th Quarter		83,073		183,145	$	1.10		65,850		145,172	$	114,513
3rd Quarter		81,693		180,102		0.99		65,523		144,454		100,231
2nd Quarter		76,521		168,700		1.04		68,058		150,043		112,523
1st Quarter		76,653		168,990		1.04		68,024		149,968		109,659
Total		317,940		700,937	$	1.04		267,455		589,637	$	436,926
(1) Does not include Toll shipments from Nordural Grundartangi